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Money Dashboard Crowdfunding - Am I Missing Something
pramsay13
Posts: 2,036 Forumite
I use Money Dashboard to manage all my different bank accounts and think it is a decent app.
Recently I've been getting messages to invest in Money Dashboard which it is valuing at £21,000,000.
Now Money Dashboard seems to have around 200,000 people using the service, but that means that everybody using it is worth £105, but considering it is a free service how is that possible?
Recently I've been getting messages to invest in Money Dashboard which it is valuing at £21,000,000.
Now Money Dashboard seems to have around 200,000 people using the service, but that means that everybody using it is worth £105, but considering it is a free service how is that possible?
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You don't pay anything for Google and that's worth several hundred billion. I imagine once they have enough users they'll market products to them and take a cut. If it becomes a smart service they may even recommend services based on your accounts and profile. Does it not say in the prospectus?0
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Fatbritabroad wrote: »You don't pay anything for Google and that's worth several hundred billion. I imagine once they have enough users they'll market products to them and take a cut. If it becomes a smart service they may even recommend services based on your accounts and profile. Does it not say in the prospectus?
Plenty of people do pay money to google though, mainly advertising, so I understand how they can be worth that kind of money.
At the minute there is no advertising on money dashboard and no marketing of products so I'm unsure where the valuation comes from. The prospectus says that they generate revenue from "insightful market research based on anonymised banking data" but I doubt anyone is paying £105 per person for that market research.0 -
I had an email from one of my banks, Barclays, a few weeks ago, informing me that due to new open banking standards I could now configure things so I can access and see my other bank accounts from within my Barclays App.
So, if there's no longer any "secret sauce" to have this functionality, what do MD have to make them worth millions ? That's an open question, maybe they have something, but it's hard to make money when competing with free, plus if Barclays are offering this, so will others, and that will inevitably lower the % of users who would use a third party.0 -
I don't disagree, however it was interesting to see them add Coinbase and Marcus recently. Perhaps there's a slight advantage to being totally focused on providing one service. The other issue with using a bank service is potentially losing your history if you switch or having to keep a zombie account open.0
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I see from a cursory skim that moneybase do more than just present all your accounts in one place, they also analyse your spend and are a sort of budgeting app.
What the appetite for that is I dont know. YNAB make a living from it so this would be a rival to that i guess. No idea how big YNAB is to try and estimate the market share, i suspect they are privately owned.0 -
Pramsay - did you sign up for any kind of investors' mailing list, or are they sending this to all Money Dashboard customers?
It certainly looks like the latter.0 -
Recently I've been getting messages to invest in Money Dashboard which it is valuing at £21,000,000.
Now Money Dashboard seems to have around 200,000 people using the service, but that means that everybody using it is worth £105, but considering it is a free service how is that possible?At the minute there is no advertising on money dashboard and no marketing of products so I'm unsure where the valuation comes from. The prospectus says that they generate revenue from "insightful market research based on anonymised banking data" but I doubt anyone is paying £105 per person for that market research.We keep the app free for consumers by generating revenue from insightful market research based on anonymised banking data. This gives our data clients critical insight into how businesses like Deliveroo or Uber are performing. We’re already generating over £970k in annual revenue 2018/19 FY(EBITDA -£958,966), but the more users we attract, the more valuable our data business will become (with a market set to be worth $7bn by 2020).0 -
200,000 users isn't a lot and could conceivably grow to 100x that if the platform develops and becomes 'smart'. Most people aren't financially literate and would welcome automation of their financial matters if it meant they didn't have to think about it.
Commercialisation could either in the form of advertising, taking cuts from financial providers if their service automatically switches people for example or offering debt products directly to customers if it has a substantial knowledge of the customer profile.0 -
It doesn't really mean that as such, you've just chosen to divide one number by another to give a fairly arbitrary third number!
There's nothing wrong with eliding the words "on average", it's fairly obvious.
If one person's data is worth nothing then somebody else's has to be worth £210 to maintain the average for the purpose of supporting their claimed valuation.There's obviously a significant difference between corporate valuation and annual revenue, but they're anticipating significant growth from further monetising the data:
They've been running on venture capital money (and, for last two years, money from punters on CrowdCrap, and now that of their own customers) for almost 10 years and they haven't figured that out yet. Nor does what I've seen of their pitch explain how they're going to achieve it.0 -
Malthusian wrote: »There's nothing wrong with eliding the words "on average", it's fairly obvious.
If one person's data is worth nothing then somebody else's has to be worth £210 to maintain the average for the purpose of supporting their claimed valuation.Malthusian wrote: »Further growth just means they will haemorrhage even larger amounts of money. Unless and until they come up with a way to achieve profitability.
They've been running on venture capital money (and, for last two years, money from punters on CrowdCrap, and now that of their own customers) for almost 10 years and they haven't figured that out yet. Nor does what I've seen of their pitch explain how they're going to achieve it.0
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